NORWICH – After seeing a slump in April and May, sales tax collections in Chenango County finished higher than expected by the end of the second quarter.

Chenango’s sales tax revenues mirror a statewide trend in which local sales tax collections were up 3 percent in the second quarter, according to a new report from the NYS Comptroller’s Office.

In Chenango County, sales taxes are up 5.6 percent from the same time last year. Collections were a slow start, down 8 percent in April and nearly 9 percent in May; but collections rebounded 35.8 percent in June, possibly due to factors such as lower inflation rates and lower fuel prices that encouraged spending during the later half of the second quarter, according to the state comptroller’s office.

The change between April and June may also be the result of fiscal adjustments made statewide, explained Chenango County Treasurer Bill Craine.

“State tax and finance has a general set of algorithms that they use, and so much of it depends on how business is doing in New York City. In this particular case, there could have been an overpayment to New York City in April and May and Chenango County received less. By the time those adjustments were calculated, we were entitled to more and it was trued up with all the counties.”

Overall, Craine believes the county could see tax collections up by roughly 5 percent by year’s end, though he noted that changes in inflation rates and fluctuating gas prices through the rest of the year will likely play a role.

“I think it’s much more that things are expensive,” he added. “People are more driven by what they need, and supplies and groceries have become more expensive.”

While inflation takes a hit on family budgets, it has impacted expenses to local governments too. Sales tax collections have swelled locally, but county officials say that only helps offset escalating costs of services and payroll for county personnel.

The state comptroller’s office points to local government sales tax collections in New York State that totaled $5.7 billion in the second calendar quarter (April-June) of 2023, an increase of 3 percent, or nearly $167 million, compared to the same period last year.